MN Finance wrote:Not comparing apples to apples, but if you're ok with the interest risk of an intermediate fund, then certainly the current yields will put you ahead by investing. That said, your expected return on the fund is not the current yield but rather the aggregate YTM of all the bond holdings, which will be less than the current yield. Given that unknown YTM, your net gain is probably minimal over the debt, and I'd rather not have an auto loan at all, so would pay it off.
newpup wrote:I have an auto loan at Pen Fed at 1.49% originated in Dec. 2012 which I could now pay off. Should I do that, or invest in Vanguard California intermediate muni (VCADX) yielding 2.42%?
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